Jaypee seeks ‘loan’ from senior executives

NOIDA: The senior management of Jaypee group has received forms seeking their consent for contribution of a part of their October salaries to the company as a loan. The note issued on Thursday states the company will repay the amount to them in nine equal installments starting January 2018. A company spokesperson said no such form had been issued to junior or middle-rung employees.

The initiative is believed to be part of the company’s drive to collect funds.

Group company Jaypee Infratech is facing insolvency proceedings and its parent company, Jaiprakash Associates Ltd, has been ordered by the Supreme Court to deposit Rs 2,000 crore in its registry. The apex court direction came on a plea by homebuyers in Jaypee projects who are still waiting for their flats.


Commenting on the form seeking loan from employees, a company spokesperson told TOI, “This is an internal matter of the company and only concerns the top management. Salary for junior and mid-level employees for October has been distributed.”

Insolvency proceedings had been initiated against Jaypee Infratech on a plea by IDBI bank in the National Company Law Tribunal. An insolvency resolution professional was also appointed. But the proceedings came to a halt when a homebuyer, Chitra Sharma, moved the Supreme Court, seeking clarity on her rights in such proceedings and pleading that the interest of buyers be protected.

Other buyers joined that plea. The hearing is on in the apex court.